Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel.

Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow:

MonthMachine HoursElectricity CostsJanuary2,700$18,500February3,100$21,200March2,100$13,600April3,300$23,200May4,000$28,350June3,500$22,200July4,300$24,850August3,700$22,850September2,200$15,700October3,900$26,200November4,900$31,200December4,400$27,850

Summary OutputRegression StatisticsMultiple R0.965R Square0.930Adjusted R20.923Standard Error1,443.07Observations12.00

CoefficientsStandard Errort StatP-valueLower 95%Upper 95%Intercept2,728.641,800.971.520.16(1,284.17)6,741.44Machine Hours5.770.5011.560.004.666.88

Based on the results of the high-low analysis, the estimate of electricity costs in a month with 2,400 machine hours would be

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting

Authors: Heintz and Parry

20th Edition

1285892070, 538489669, 9781111790301, 978-1285892078, 9780538489669, 1111790302, 978-0538745192

More Books

Students also viewed these Accounting questions

Question

Establish identity. cos( + k) = (-1)k cos , k any integer

Answered: 1 week ago

Question

Be aware of three key trends in communications and networking

Answered: 1 week ago

Question

What is a client?

Answered: 1 week ago

Question

Be familiar with the major components of and types of networks

Answered: 1 week ago